Tenterden leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Tenterden will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a landlord in Tenterden,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tenterden valuers.
In recent months Tommy, started to get near to the eighty-year mark with the lease on his studio apartment in Tenterden. Having purchased his flat 19 years previously, the length of the lease was of minimal importance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Tommy arranged for a lease extension at the eleventh hour last March. Tommy and the freeholder via the management company ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the amount would have become more costly by a minimum £850.
Dr P Parker took over the lease of a ground floor flat in Tenterden in April 2000. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Comparative residencies in Tenterden with a long lease were worth £176,200. The mid-range ground rent payable was £65 collected annually. The lease ended in 2082. Taking into account 56 years left we estimated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.
Ms Katherine Mason bought a one bedroom flat in Tenterden in March 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical premises in Tenterden with a long lease were in the region of £242,600. The average amount of ground rent was £45 billed quarterly. The lease terminated on 7 September 2093. Considering the 67 years left we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 plus costs.